Pumping and Dumping of Alternative crypto-currency and more

In 2013 there was about 70 different alternative crypto-currency coins, in 2014 its well over 315 different coins and with that the process with pumping and dumping to make profits, the hype online mostly, also with TV and cable TV can effect bit-coins price for example due to positive and negative press story’s, the same is for most coins.

Its easy to get caught in the excitement of a coin that is being pumped, the key is to sell out before its being dumped, because a massive price fall will most likely occur, sometimes there are coins that will hold a strong market cap and end up in the top 30 coins after being pumped, like dark coin for example.

Alternative coins are highly speculative and can make fast profits and fast looses, I must say the landscape and positions of alternative coins has shifted a lot in the last 8-12 weeks and due to the amount of alternative coins it can become quite hard to follow, as a guess of the top 100 coins, I would hope that 50% will remain in the top 100 coins.

Comments from others in the bit-coin community is that many of the alternative Coins will die off in the future, there are about 180 fiat currency’s in the world, so how many alternative coins does the world need?, 100-200?

personally I don’t see the need for more than 200 different coins, in the end market forces will self regulate this and determine the outcome, due to supply and demand.

Some more important points with trading coins, I use 2 factor security for 3 of the main exchanges, 1 use my gmail account for security and the other 2 are basic security with very little holdings, the Google authenticator on my smart phone using the laptop to trade, sometimes it can be frustrating to get into accounts with higher security, beats loosing large holdings of coins.

The use of a wallet on your own computer to store coins, is a part I have very little knowledge of, due to using exchanges myself to store my alternative coins and I can see high value in an article from others about the positives and negatives of using exchanges to store coins.

Exchanges are moving towards cold storage of bit-coins, but alternative coins?,I have no idea if they are stored with the cold storage method, some work with 80% of the exchanges stored bit-coins in cold storage and 20% hot, that could be hard to manage if the market runs hard, but its a very good way for exchanges to protect themselves and their customers accounts

Cold storage put simply is coins taken offline, so if the exchange is hacked, those coins cannot be accessed and stolen

I just read an article about being in the wrong fork due to using an old wallet(loosing coins) to store your coins, this is a blind-spot for me others can inform us all about, this is closer to the issues for miners and a side of coins I stayed away from, my focus was to trade coins.

comments in other posts about its the (Wild West) online for coins are so true, over time the bad actors are weeded out and the industry will stabilize, some are saying online that bit-coin is the second best invention after the internet its self which could be over time be an accurate statement, giving the power back to the people and away from governments and banks.

The future sure is going to be interesting due to bit-coin and other alternate coins, being an inventor myself with products I have sold online direct to the end users, using bit-coin will reduce costs for online sellers and also by around the year 2020 50% of all retail could be online, so that’s huge, estimates for the UK are for the 50%, so its an indicator, great for the buyers reducing the cost of products, I can see value in a online service that gives bit-coin online sellers accreditation from a decentralized method, NXT coin could build a second level service for this, to provide more security and less rip offs for buyers of products using crypto-currency. http://www.nxt.org/

Consider this if bit-coin goes to $10,000- per coin, were will the rest of the market be?, (they all rise and fall together like balloons, a statement from my fiat currency trader friend)

personally I first learnt of bit-coin in 2012 due to wiki-leaks, and the banking blockade

so far only one country has banned crypto-currency (Iceland) but I believe this was a silly move on their part and will reverse the decision in the future, due to the success of http://auroracoin.org/

About the author

I am a Carpenter By Trade and a Ex-Sapper in the Australian Army Reserve, inventor of the Roofing Protractor, Stair Square and Chalkine Protractor, father of 4 children and married, living in Melbourne
also as of May 2013, a Crypto-currency trader, Alternative coins Trader, from 2000 to 2002 I day traded trades shares in the Australian Market, combined with my inventor skills, Military training my perspective can be quite different and methods.
I am a keen cyclist, bush-walker, play station 1,2,3 games player, past, soccer, volleyball, tennis, hockey.

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1 comment

The Goal of my post’s has been to be transparent and honest as possible without the exact figures of the coins I hold,sharing my personal experiences and thoughts.

one reason I like using exchanges for storing coins is having built in storage for up to and over 100 different coins (cryptsy) also exchanges are constantly updating accounts wallets, and no delays in selling fast, unless trading in that coin is halted for different reasons, always research exchanges online before signing up

by having say 6 exchanges to reduce the risks of loosing all your coins, you can transfer to the larger exchange to move larger sell orders and hopefully sell for a higher price due to more people trading on the larger exchange